More than five million council house tenants in Britain will be given the right to buy their home under new government proposals.

The Housing Bill published today will give tenants who have lived in their home for up to three years a 33% discount on the market value of their home, increasing in stages up to 50% for a tenancy of 20 years.

The government believes the bill will transform the social structure of Britain for good. Michael Heseltine, secretary of state for the environment, said: "This bill lays the foundations for one of the most important social revolutions of this century."

But Shelter, the organisation for homeless people, has said the move will increase the number of homeless people and decrease the number of homes available to accommodate them.

Opposition

Labour are vehemently opposed to the proposals believing the impact on the nation's pocket will be huge. Roy Hattersley, shadow environment spokesperson said: "We shall fight it very hard in the House of Commons and in the country."

As a further incentive to prospective buyers the government will also offer tenants a 100% mortgage from the local authority.

Those who cannot afford to buy their home immediately will be able to pay a £100 deposit and postpone the sale for two years at which time they will be able to purchase their home at today's prices.

If local authorities do not comply with the new legislation the secretary of state will have the power to directly intervene in the sale.

Critics have accused the government of being too generous to council house tenants but the prime minister, Margaret Thatcher and her government are sure the new policy will pave the way for a property-owning democracy and a more socially responsible population.

Labour believe the cost to the public purse will be at least £5,000 per sale but the Conservatives maintain that central and local government will save millions through the reduction of subsidy to council house tenants.